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Rudd offered Gillard leadership before challenge

Kevin Rudd has lamented being "such a trusting bastard" after he says he offered to stand aside as prime minister for Julia Gillard in 2010, a deal she agreed to before rescinding to challenge him as leader only minutes later.

In his first on-the-record interview about the pivotal meeting on June 23 – before he was infamously dumped as prime minister – Mr Rudd says the agreement between himself and Ms Gillard was made in his office and witness by senior Labor figure John Faulkner, The Australian newspaper reports.

Mr Rudd says Ms Gillard agreed for her to transition to leader at the end of 2010 if he was unable to resurrect the government's performance and its electoral hopes.

"We had a discussion about her concerns about the government's direction – a large part of which was news to me," Mr Rudd said.

"I put to her the simple proposition that if by the time the election was due at the end of the year the government was not in a winning position then of course I would not wish to remain as leader."